Life Insurance Corporation of India IPO – Schedule *(Final – Pg# 562 of RHP)*
28th April – Announcement of Price Band
02nd May – Anchor Investors Allotment
04th May – Offer Opens
09th May – Offer Closes
12th May – Finalisation of Basis of Allotment
13th May – Unblocking of ASBA Accounts
16th May – Credit of Equity Shares to Depository Accounts
17th May – Commencement of Trading
Life Insurance Corporation of India IPO – Issue Information *(Final)*
Issue Opens on: 04 May 2022
Issue Closes on: 09 May 2022
Issue Type: Book Built Issue IPO
Issue Size: 22,13,74,920 Shares
Face Value: Rs.10/- per Share
Issue Price: Rs.902 – Rs.949 Share
Discount: Rs.45/- (for Employees & Retail) + Rs.60/- (for Policy Holders)
Market Lot: 15 Shares
Listing At: NSE, BSE
Equity Shares outstanding prior to the Issue = 6,32,49,97,701 Shares
Offer for Sale of 22,13,74,920 Shares @949/- = Rs.*20,557.23Crs
(*considering discount for Employees & Retail & Policyholders)
Equity Shares outstanding after the Issue = 6,32,49,97,701 Shares
Category-wise Break up:
Anchor – 5,92,96,853 Shares = 5,627.27Crs. (@949/-)
QIB – 3,95,31,236 Shares = 3,751.51Crs. (@949/-)
NII – 2,96,48,427 Shares = 2,813.64Crs. (@949/-)
RII – 6,91,79,663 Shares = 6253.84Crs (@904/-) (Lot size: 15 = 46,11,978 Forms)
Employees – 15,81,249 Shares = 142.94Crs. (@904/-)
PolicyHolders – 2,21,37,492 Shares = 1,968.02Crs. (@889/-)
Total Issue – 22,13,74,920 Shares = 20,557.23Crs.
Subscription required for 1X
RII = 46,11,978 Forms
NII = 2,813.64 Crs.
Life Insurance Corporation of India IPO – Financial Information (Basis of Valuation)
The information is collated from the following documents:
1) RHP = Draft Red Herring Prospectus Dated April 26, 2022 (663 pages)
EPS for FY18-19 >>> Rs 4.15 (Page #103 of RHP)
EPS for FY19-20 >>> Rs.4.29 (Page #103 of RHP)
EPS for FY20-21 >>> Rs.4.70 (Page #103 of RHP)
EPS for 9M21-22 >>> Rs.2.71 (Page #103 of RHP)
RoNW for FY18-19 >>> 322.25% (Page #104 of RHP)
RoNW for FY19-20 >>> 317.14% (Page #104 of RHP)
RoNW for FY20-21 >>> 45.65% (Page #104 of RHP)
RoNW for 9M21-22 >>> 20.84% (Page #104 of RHP)
NAV as on December 30, 2021 was Rs.13.01 (Page #104 of RHP)
Listed Industry Peer Group (Page #105 of RHP):
SBI Life Insurance Company,
HDFC Life Insurance Company,
ICICI Prudential Life Insurance Company
Life Insurance Corporation of India IPO – *Market’s Current Estimates of oversubscription*:
NII = 40KCrs. = ~14.22X
RII = 60L Forms = 1.63X Applic. wise (Avg allotment of ~9.22 shares per lot)
Interest cost *@7.00%p.a.* for 7days = *127.40 paise for 1X*
Thus, for NII the costing = 14.22 X 127.40 paise = Rs.18.11 per share (= GMP)
And, for RII the costing = 9.22 X 18.11 = Rs.167.06/- (= Kostak)
Life Insurance Corporation of India IPO – *GMP Estimated*
GMP 25 +/- 1
Kostak 230 +/- 10
Subject2 @350/-
LIC IPO
Issue Price = 1.112 X Embedded Value (as of Sept’21)
Market Cap = 1.112 X 5,39,686 Crs = 6,00,242Crs
Rate per Share = MarketCap ÷ No. of Outstanding Shares = 6,00,242Crs ÷ 6,32,49,97,701 = 949/-
Fair Value = 1.40 X Embedded Value (as of Sept’21)
Market Cap = 1.40 X 5,39,686 Crs = 7,55,560 Crs
Rate per Share = MarketCap ÷ No. of Outstanding Shares = 7,55,560 Crs ÷ 6,32,49,97,701 = 1,195/-
*LIC IPO*
*Comparison with Peer Group* 26/April
HDFC Life | CMP = 543.30 | No. of Shares = 2,11,26,19,161 | MCap = 1,14,779Crs. | Embedded Value = 30,048Crs. | MCap / EV = *3.820*
SBI Life | CMP = 1,066.35 | No. of Shares = 1,00,03,70,562 | MCap = 1,06,675Crs. | Embedded Value = 35,290Crs. | MCap / EV = *3.023*
ICICI Life | CMP = 517.40 | No. of Shares = 1,43,73,10,661 | MCap = 74,366Crs. | Embedded Value = 31,625Crs. | MCap / EV = *2.352*
And,
*LIC IPO | Issue Price = 949 *(FINAL)* | No. of Shares = 6,32,49,97,701 | MCap = 6,00,242Crs. | Embedded Value = 5,39,686Crs. | MCap / EV = 1.112*